Business
Largo Reports Fourth Quarter and Full Year 2023 Operational and Sales Results Highlighted by Record Quarterly High Purity V2O5 Production; Provides 2024 Guidance
All amounts expressed are in U.S. dollars, denominated by “$” Q4 and FY 2023 Highlights Quarterly V2O5 equivalent production of 2,768 tonnes (6.1 million lbs1)
About this update from Largo Inc.
[{"type":"text","content":"All amounts expressed are in U.S. dollars, denominated by “$” Q4 and FY 2023 Highlights Quarterly V2O5 equivalent production of 2,768 tonnes (6.1 million lbs1) in Q4 2023, a 38% increase over the 2,005 tonnes produced in Q4 2022 Annual V2O5 production of 9,681 tonnes (21.3 million lbs1) in 2023 vs. 10,436 tonnes in 2022; Within the Company’s 2023 annual production guidance range of 9,000 – 11,000 tonnes Quarterly global V2O5 recovery of 79.4% in Q4 2023, a 6% increase over the 74.7% achieved in Q4 2022; Annual global V2O5 recovery of 80.0% in 2023 vs. 79.1% in 2022 Quarterly sales of 2,605 tonnes of V2O5 equivalent (inclusive of 139 tonnes of purchased material) in Q4 2023 vs. 2,774 tonnes in Q4 2022 Annual V2O5 equivalent sales of 10,396 (inclusive of 929 tonnes of purchased material) tonnes in 2023 vs. 11,091 tonnes in 2022; Within the Company’s annual 2023 sales guidance of 8,700 – 10,700 tonnes Ramp up of the Company’s ilmenite concentrate production remains ongoing with 8,970 tonnes produced in Q4 2023; Ilmenite production was 814 tonnes in October, 2,546 tonnes in November and 5,610 tonnes in December In October, Largo Clean Energy’s (“LCE”) 6 megawatt-hour vanadium redox flow battery (“VRFB”) deployment for Enel Green Power España (“EGPE”) was validated to operate on test conditions according to EGPE specifications and LCE test procedures The Company’s review of strategic alternatives for LCE to evaluate opportunities to maximize value in the clean energy transition remains ongoing The Company published its second annual Climate Report, aligned to the Taskforce on Climate-related Financial Disclosures which highlighted improvements to certain climate-related metrics and targets Vanadium Market Update2 The average benchmark price per lb of V2O5 in Europe was $6.46 in Q4 2023, a 22% decrease from the average of $8.25 seen in Q4 2022; The average benchmark price at December 31, 2023 was $6.53, a 31% decrease from the average of $9.44 at December 31, 2022 The average benchmark price per kg of ferrovanadium in Europe was $26.61 in Q4 2023, a 20% decrease from the average of $33.20 seen in Q4 2022; The average benchmark price at December 31, 2023 was $28.70, a 21% decrease from the average of $36.50 at December 31, 2022 Vanadium spot demand was soft in Q4 2023, primarily due to adverse conditions in the Chinese and European ste...